FEATURED ARTICLES ABOUT PRIVATE EQUITY FIRMS - PAGE 3

MUMBAI: Differences over valuation is set to scuttle a deal which could have led to American Tower Corp buying a significant stake in local tower operator Viom Networks, whose major shareholders are expected to make a final decision on the US company's Rs 19,000-crore bid this week. ATC, the only bidder remaining in the race for the stake, is unlikely to renew or raise its offer in case the local company's shareholders led by the Tata Group do not accept the offer made in August, a person closely involved in the process told ET. Unlisted Viom's shareholders, who also include infrastructure company SREI Group and a clutch of private-equity firms, are expecting at least Rs 3,000 crore more than what ATC has bid and are unlikely accept the offer, another person said.

MUMBAI: Wockhardt is in talks with private equity firms to raise $150-200 million to meet convertible bond redemptions that fall due in October, sources said. Wockhardt will need to pay $142.5 billion in October, adding the drug maker raised $110 million in overseas convertible bonds in 2004. The bonds are convertible at Rs 486 a share but Wockhardt's shares ended at Rs 93.35 on Friday, down 78% so far in 2008. Officials at Wockhardt could not be reached for comment.

WASHINGTON: Private equity heavyweight The Carlyle Group reached a deal to buy US health care firm Manor Care Inc for $6.3 billion, the companies announced on Monday. Washington-headquartered Carlyle has agreed to pay $67 for each Manor share in an all-cash deal that has been approved by Manor's board of directors. The deal is just the latest to be initiated by Carlyle, one of the world's biggest private equity firms. Private equity firms specialize in taking public firms private, overhauling their operations and then typically try to take them public again for a handsome profit.

WASHINGTON: The Federal Reserve made it easier Monday for private equity firms and other types of investors to take minority stakes in banks, a move that could usher new capital infusions to cash-hungry banks and help them cope with credit stresses. The Fed issued policy guidance that said it will allow investors under certain circumstances to take up to a 33 per cent equity stake in a bank without running into regulatory hurdles. Such an investment wouldn't constitute a "controlling interest" and thus would not trigger regulatory oversight.

NEW YORK: The US Securities and Exchange Commission is investigating whether banks including Citigroup Inc and private-equity firms such as Blackstone Group, violated bribery laws in their dealings with sovereign-wealth funds, according to a media report. "The Securities and Exchange Commission (SEC) is investigating whether banks and private-equity firms, violated bribery laws in their dealings with sovereign-wealth funds," The Wall Street Journal reported citing a source.

NEW DELHI: Unity Infraprojects today said it has initiated discussions with some private equity firms for raising up to Rs 175 crore under two special purpose vehicles (SPVs) and hopes deals to be through in three months from now. "We are in talks with a couple of private equity firms for raising Rs 175 crore under two SPVs at the project level. I hope to finalise the deals in 2-3 months," Unity Infraprojects Chief Financial Officer Madhav Nadkarni told PTI. Nadkarni said the company has identified one real estate and a transportation project in which it would dilute stake to private equity firms, but did not identify the projects.

NEW DELHI: The Wadhawan family of the Mumbai-based real estate firm Housing Development and Infrastructure (HDIL) has emerged as the front-runner to buy Gurgaon-based Artemis Hospitals from the Kanwar family that runs Apollo Tyres. A Hyderabad-based hospital chain and a business family from Punjab are also in the fray, said a person familiar with the development . The hospital has been valued at around 450 crore including outstanding debt, he said requesting anonymity as the deal is yet to be finalised.

NEW DELHI: The Hero Group, owned by New Delhi-based Munjal family, will pay 3,833 crore to acquire a 26% stake from its 27-year-old Japanese joint venture partner Honda Motor Co in the two-wheeler major Hero Honda. The transaction was completed for a valuation of 739.97 per share - at less than half of the Tuesday's closing price of 1,518.15 on the Bombay Stock Exchange (BSE). The Hero Group said in a release that it was acquiring the entire 26% stake of Honda Motor Co in their joint-venture Hero Honda Motors Ltd at 739.97 per share.

BANGALORE: SAP India announced that it has launched its Private Equity Advisory Council in the country on Monday, a ccording to a statement released by the company. "Our PE practice is well aligned with the PE life-cycle from due diligence through holding to the exit and helped over 150 PE portfolio companies in their value creation journey," Tamas Hevizi , Global Managing Director, SVP - SAP Private Equity, said in the statement. SAP said it would help PE funds through the investment lifecycle including process and IT maturity, risk insights at the time of due-diligence, establishing governance frameworks and visibility during the holding period and ensuring IPO readiness at the time of exit.

MUMBAI: Business process outsourcing company Hinduja Global Services expects to reach $1 billion (Rs 6,200 crore) in revenue in the next three years, as its core BPO business expands, helped by the US healthcare overhaul and expansion into new verticals such as Indian e-commerce and elearning. Part of the Hinduja Group, the company was first called Ashok Leyland Information Technology before it was merged with Hinduja Finance Corporation to form HGS. "We are growing at above 20%. If things go well, in three years we could cross $1 billion.